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Managing Human Element at Work
Notes had reached a stalemate in negotiations with its union dropped a rumour that the company’s
wage offer would be withdrawn at the end of the week if the union continued to ignore it.
Needless to say, this word reached the union quickly, and the parties were back at the
bargaining table the next day.
10.8 Disadvantages of Informal Organization
Informal organization is not an unmixed blessing. If uncooperative with the management,
it may create serious problems. These are as under:
10.8.1 Resistance to Change
Although there are no charts or blueprints to bind an informal organization, there are
customs, conventions and culture which bind it. Therefore, the group resists those management
demands which are perceived by it as detracting from its culture or threatening the existing
relationships among the members.
10.8.2 Sub-optimization
In the large informal organization, everyone is supposed to be working towards the same
objectives. But when informal groups, with different interests and needs, develop the quest for
achieving group goals, it may lead members away from organization objectives. Members are
likely to put their own group-need satisfaction ahead of the organization’s objectives. The
result is that the organization suffers. This is known as the sub-optimization problem where
small group objectives conflict with or take precedence over the larger organization’s goals.
10.8.3 Rumour
One undesirable characteristic of informal communication, called the “grapevine”, is its
function as a carrier of rumour. Research shows that the story given at the origin of a rumour
is filtered, elaborated, and assimilated. Each person chooses a few basic details of interest
to him which he can conveniently remember and pass on to others. This subtraction of
details is called filtering. The story becomes worse when people add new details according
to their feelings and reasonings. This is elaborating. People may amend some existing details
according to their psychological framework. This is assimilation.
10.8.4 Group-think Philosophy
Some members begin to worship the group. They come to believe that what they seek must
be “good” because the group has decided so. Thus, there develops a delusion of righteousness.
Conformity is induced, in which an individual loses his identity.
10.9 Harmonizing Informal and Formal Organization
Since management can neither order the informal organization out of existence nor circumvent
it by industrial engineering or directives, the logical course is to harmonize it with the
formal organization. A number of steps can lead towards this result. These are as under:
1. Where informal rules are acceptable, they should be institutionalized. Similarly, that
informal pattern of relationships which serves the company well should be incorporated
into the formal structure.
2. If informal lines of communication exist, they should be used by the management.
3. When informal leaders develop, they should be appointed to positions of formal
authority.
4. Employees should be made to know that the management not merely tolerates but
willingly accepts the existence of an informal group.
232 LOVELY PROFESSIONAL UNIVERSITY
